FIN INT

A currency _____ option provides the right to sell a specified currency for a specified price within a specified period of time.

• Call

• Put

• Spread

• Strike

All projects (whether for expansion, replacement or renewal, or some other purpose) have the first two components. Some, however, lack the final component:

• Initial investment

• Operating cash flows

• financial cash flows

• terminal cash flow

A financial ____________ contract is a standardized agreement to deliver or receive a specified amount of a specified financial instrument at a specified price and date.

• Swaps

• Options

• Futures

• Spreads

The method used by most large companies to evaluate investment projects. It is found by subtracting a project’s initial investment (CF₀) from the present value of its cash inflows (CF_t) discounted at a rate equal to the firm’s cost of capital.

• IIR

• BFF

• NPV

• BTS

They are the net incremental after-tax cash inflows and outflows resulting from implementation of the project during its life.

• initial investment

• operating cash flows

• terminal cash outflow

• non-operating cash flows

The ____________ is the after-tax nonoperating cash flow occurring in the final year of the project. It is usually attributable to liquidation of the project.

• initial investment

• operating cash flows

• financial cash flows

• terminal cash flow

It is the relevant cash outflow at time zero.

• initial investment

• operating cash outflows

• financial cash inflows

• terminal cash outflow.

In financial futures markets take positions to profit from expected changes in the price of futures contracts over time.

• Hedgers

• Avengers

• Speculators

• Stockholders

The _________ of a financial futures contract buys the financial instrument, and the ______ of a financial futures contract delivers the instrument for the specified price.

• hedgers / speculators

• future / option

• call / put

• buyer / seller

They assess international flows of funds to forecast changes in interest rate movements, which in turn affect the value of their respective portfolios.

• Portfolio managers

• Financial managers

• Speculators managers

• Hedgers managers